HB0753 94TH GENERAL ASSEMBLY

LRB094 05972 EFG 36028 b

94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB0753

Introduced 2/1/2005, by Rep. Daniel J. Burke

SYNOPSIS AS INTRODUCED:

40 ILCS 5/6-127.3 new
30 ILCS 805/8.29 new

Amends the Chicago Firefighter Article of the Illinois Pension Code. Provides that a qualifying firefighter, at the time of applying for a retirement annuity, may elect to forfeit to the Fund a portion of his or her lump sum payment for unused furlough time in exchange for an increase in his or her annuity. Provides for a maximum increase of 5% of average salary. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.

FISCAL NOTE ACT MAY APPLY

PENSION IMPACT NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT in relation to public employee benefits.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Pension Code is amended by adding Section 6-127.3 as follows:

(40 ILCS 5/6-127.3 new)

Sec. 6-127.3. Additional annuity for unused furlough time.

(a) This Section applies only to a fireman who (i) has at least 20 years of creditable service, (ii) withdraws from service on or after the effective date of this Section, and (iii) is entitled at the time of withdrawal from service to receive a lump sum payment for unused furlough time.

(b) As used in this Section, "average salary" means the salary used in computing the fireman's retirement annuity under Section 6-128, or if the annuity is calculated under a different Section, then the highest 48 consecutive months of salary within the 10 years immediately preceding withdrawal from service.

(c) A qualifying fireman, at the time of applying for a retirement annuity under this Article, may elect to forfeit to the Fund a portion of his or her lump sum payment for unused furlough time in exchange for an increase in his or her annuity. In exchange for forfeiting an amount of lump sum payment for unused furlough time equal to 1.0% of average salary, an increase in annuity equal to 0.25% of average salary shall be granted. The maximum amount of increase in annuity that may be granted under this Section is 5.0% of average salary.

(d) The increase in annuity granted under this Section is not subject to any limitation on maximum retirement annuity (including the 75% limitation provided in Section 6-128) or maximum increase in retirement annuity (including the 30% limitation provided in Section 6-164) otherwise provided in this Article. The increase in annuity granted under this Section shall be deemed to be a part of the originally granted annuity for purposes of calculating any automatic annual increases under Section 6-164.

(e) Any part of a lump sum payment for unused furlough time that is forfeited under this Section:

(1) shall be paid by the employer directly to the Fund rather than to the withdrawing employee, no later than one year after the date of withdrawal; and

(2) to the extent allowable under federal law, shall be treated as an employee contribution picked up by the employer, in the same manner as is provided for other employee contributions under Section 6-165.1.

(f) An election to forfeit a portion of a lump sum payment for unused furlough time under this Section is irrevocable. This Section does not affect the payment of any portion of a lump sum payment for unused furlough time that has not been forfeited under this Section.

Section 90. The State Mandates Act is amended by adding Section 8.29 as follows:

(30 ILCS 805/8.29 new)

Sec. 8.29. Exempt mandate. Notwithstanding Sections 6 and 8 of this Act, no reimbursement by the State is required for the implementation of any mandate created by this amendatory Act of the 94th General Assembly.

Section 99. Effective date. This Act takes effect upon becoming law.